Parking Business Taking a Toll during Covid-19 in Malaysia
Parking demand is down by 95% during the Covid-19 Movement Control Order (MCO). It Started on 18th of March 2020 and still empty. Entrepreneurs nationwide are looking at filling up their income on the empty parking lots.
Parking lots across the country once was lively with shoppers, workers and car was parked illegally due to limited parking lots is now empty. It looks like a ghost town.
With businesses closed and many people working from home, demand for parking is down 95% , according to data gathered from many parking businesses. This decline has hit every sector of the industry, from airport lots to privately-owned office parking lot spaces.
Parking outlines the economics of our cities. it decides the parking fee, the way our traffic moves, determines the price of parking. Even during good time there we redundant parking lots due to less business in some shopping malls or less tenant at office building.
Parking economics in Malaysia
The plus point of this business is people don’t bother as the fee is small. It like a volume game. Malaysia is gifted with more car owners per family than those in Singapore.
As you see in the above chart, The Airports and railway like KTM, LRT and MRT are having a substantial number of car park lots. Shopping Mall has about 11% market share. This billion dollar business has now dropped to 95% . The recovery period might take as long as 1 year. Many parking business are closing as they can’t pay rent to the landowners or building owners. Parking company owners are also aware that after the covid-19 MCO is removed government may ask them to do a disinfection service, putting sanitizer and other measures for anti-covid19.
For investors, the biggest selling point is how easy it is to maintain a parking space. A real-estate developer buys parking lots as its not that expensive to maintain. Now buying parking space are a liability.